<SUBMISSION>
<ACCESSION-NUMBER>0001104659-01-501679
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20010630
<FILING-DATE>20010814
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CPB INC
<CIK>0000701347
<ASSIGNED-SIC>6022
<IRS-NUMBER>990212597
<STATE-OF-INCORPORATION>HI
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-10777
<FILM-NUMBER>1707754
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>220 S KING ST
<CITY>HONOLULU
<STATE>HI
<ZIP>96813
<PHONE>8085440500
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>P O BOX 3590
<CITY>HONOLULU
<STATE>HI
<ZIP>96811
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>j1247_10q.htm
<DESCRIPTION>10-Q
<TEXT>
<html>

<head>
<title>Prepared by MerrillDirect</title>
</head>

<body link=blue vlink=purple>

<div>

<div align=right><b><font size=5>

<hr size=2 width="100%" noshade color=black align=right>

</font></b></div>


<div align=right><b><font size=5>

<hr size=1 width="100%" noshade color=black align=right>

</font></b></div>

<p align=center><b><font size=5>UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p align=center><b><font size=2>Washington,
D.C.&nbsp; 20549</font></b></p>

<p align=center><b><font size=5>FORM 10-Q</font></b></p>

<p><b><font size=2>(Mark One)</font></b></p>

<p><b><font size=3 face=Wingdings>&#253;</font></b><b><font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>For the quarterly period ended June 30, 2001</b></font></p>

<p align=center><b><font size=2>OR</font></b></p>

<p><b><font size=3 face=Wingdings>o</font></b><b><font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>For the transition period from __________ to _________</b></font></p>

<p align=center><b><font size=2>Commission file number 0-10777</font></b></p>

<p align=center><b><font size=5>CPB INC.<br>
</font></b><font size=2>(Exact name of registrant as specified in
its charter)</font></p>

<div align=center>


<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="49%" valign=top><b><font size=2>Hawaii</font></b></td>
  <td  align=center width="49%" valign=top><b><font size=2>99-0212597</font></b></td>
  <td   width="1%">&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="49%" valign=top><font size=2>(State or other
  jurisdiction of incorporation or organization)</font></td>
  <td  align=center width="49%" valign=top><font size=2>(I.R.S. Employer
  Identification No.)</font></td>
  <td   width="1%">&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="49%" valign=top>&nbsp;</td>
  <td  align=center width="49%" valign=top>&nbsp;</td>
  <td   width="1%">&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="49%" valign=top><b><font size=2>220
  South King Street, Honolulu, Hawaii</font></b></td>
  <td  align=center width="49%" valign=top><b><font size=2>96813</font></b></td>
  <td   width="1%">&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="49%" valign=top><font size=2>(Address of principal
  executive offices)</font></td>
  <td  align=center width="49%" valign=top><font size=2>(Zip Code)</font></td>
  <td   width="1%">&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="49%" valign=top>&nbsp;</td>
  <td  align=center width="49%" valign=top>&nbsp;</td>
  <td   width="1%">&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="100%" colspan=3 valign=top><b><font size=2>(808)
  544-0500</font></b></td>
 </tr>
 <tr>
  <td  align=center width="100%" colspan=3 valign=top><font size=2>(Registrant's
  telephone number, including area code)</font></td>
 </tr>
</table>


</div>

<p><font size=2>&nbsp;</font></p>

<p align=center><b><font size=2>None</font></b><font size=2><br>
(Former name, former address and former fiscal year, if changed since last
report)</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Indicate by check mark whether the
registrant (1) has filed all reports required to be filed by Section 13 or 15
(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.&nbsp; Yes </font><font size=2 face=Wingdings>&#253;</font><font size=2>&nbsp; No </font><font size=2 face=Wingdings>o</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Indicate the number of shares
outstanding of each of the issuer's classes of common stock, as of the latest
practicable date.</font></p>

<p align=center><font size=2>Common
Stock, No Par Value;<br>
Outstanding at August 6, 2001: 8,234,988 shares</font></p>





<hr size=1 width="100%" noshade color=black align=right>






<hr size=2 width="100%" noshade color=black align=right>


<page>


<p align=center>&nbsp;</p>

<p align=center><font size=2>PART
I.&nbsp;&nbsp; FINANCIAL INFORMATION</font></p>

<p><font size=2>Item
1.&nbsp; Financial Statements</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The financial statements listed
below are filed as a part hereof.</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="11%" valign=bottom>&nbsp;</td>
  <td  align=center width="41%" valign=bottom>&nbsp;</td>
  <td  align=center width="41%" valign=bottom>&nbsp;</td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="41%" valign=top><font size=2><a href="#ConsolidatedBalanceSheets"   title="Click to goto CONSOLIDATED BALANCE SHEETS">Consolidated Balance Sheets
  (Unaudited)- June 30,</a></font><a
  href="#ConsolidatedBalanceSheets"   title="Click to goto CONSOLIDATED BALANCE SHEETS"><font size=2>2001
  and December 31, 2000</font></a></td>
  <td width="41%" valign=top>&nbsp;</td>
  <td  align=right width="5%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="41%" valign=top><font size=2><a href="#ConsolidatedStatementsOfIncome"   title="Click to goto CONSOLIDATED STATEMENTS OF INCOME">Consolidated
  Statements of Income (Unaudited) -</a></font><a
  href="#ConsolidatedStatementsOfIncome"   title="Click to goto CONSOLIDATED STATEMENTS OF INCOME"><font size=2>Three
  and six months ended June 30, 2001 and 2000</font></a></td>
  <td width="41%" valign=top>&nbsp;</td>
  <td  align=right width="5%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="41%" valign=top><font size=2><a
  href="#ConsolidatedStatementsOfChangesInStockho"   title="Click to goto CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&#146; EQUITY AND COMPREHENSIVE INCOME">Consolidated
  Statements of Changes in Stockholders&#146;Equity and Comprehensive Income
  (Unaudited) - Six months ended June 30, 2001 and 2000</a></font></td>
  <td width="41%" valign=top>&nbsp;</td>
  <td  align=right width="5%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="41%" valign=top><font size=2><a
  href="#ConsolidatedStatementsOfCashFlows"   title="Click to goto CONSOLIDATED STATEMENTS OF CASH FLOWS">Consolidated
  Statements of Cash Flows (Unaudited) -Six months ended June 30, 2001 and 2000</a></font></td>
  <td width="41%" valign=top>&nbsp;</td>
  <td  align=right width="5%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="41%" valign=top><font size=2><a
  href="#NotesToConsolidatedFinancialStatements"   title="Click to goto NOTES TO CONSOLIDATED FINANCIAL STATEMENTS">Notes to
  Consolidated Financial Statements (Unaudited) - June 30, 2001 and 2000</a></font></td>
  <td width="41%" valign=top>&nbsp;</td>
  <td  align=right width="5%" valign=top>&nbsp;</td>
 </tr>
</table>

<page>


<p>&nbsp;</p>

<p><font size=2>Item
2.&nbsp; Management's Discussion and Analysis
of Financial Condition and Results of Operations</font></p>

<p><font size=2>Overview</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CPB Inc. (the &quot;Company&quot;)
posted second quarter 2001 net income of $5.774 million, increasing by 20.5%
over the $4.790 million earned in the second quarter of 2000.&nbsp; Net income for the first half of 2001 of
$11.102 million increased by 18.4% over the $9.376 million earned in 2000.&nbsp; The increase in net income was mainly
attributed to an increase in net interest income.&nbsp; As of June 30, 2001, total assets of $1.80 billion decreased by
$19.8 million or 1.1% from year-end 2000.&nbsp;
Net loans of $1.23 billion decreased by $37.3 million or 2.9% due to the
sale of $54 million in residential mortgage loans during the first quarter of
2001.&nbsp; Total deposits of $1.41 billion
increased by $42.9 million or 3.1% during the first half of 2001.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following table presents
annualized returns on average assets and average stockholders' equity and basic
and diluted earnings per share for the periods indicated.</font></p>

<p><font size=2>&nbsp;</font></p>

<page>


<p>&nbsp;</p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="22%" valign=bottom>&nbsp;</td>
  <td  align=center width="38%" colspan=6 valign=bottom><font size=2>Three Months Ended</font></td>
  <td  align=center width="38%" colspan=6 valign=bottom><font size=2>Six Months Ended</font></td>
 </tr>
 <tr>
  <td width="22%" valign=bottom>&nbsp;</td>
  <td  align=center width="36%" colspan=5 valign=bottom><font size=2>June 30,</font></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="36%" colspan=5 valign=bottom><font size=2>June 30,</font></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="22%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>2001</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>2000</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>2001</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>2000</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="22%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="22%" valign=bottom><font size=2>Annualized
  return on average assets</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>1.30</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>1.17</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>1.25</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>1.16</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
 </tr>
 <tr>
  <td width="22%" valign=bottom bgcolor="#cceeff"><font size=2>Annualized
  return on average stockholders'equity</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>15.86</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>%</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>13.47</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>%</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>15.23</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>%</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>13.00</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>%</font></td>
 </tr>
 <tr>
  <td width="22%" valign=bottom><font size=2>Basic
  earnings per share</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>0.70</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>0.53</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>1.33</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>1.03</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="22%" valign=bottom bgcolor="#cceeff"><font size=2>Diluted
  earnings per share</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>0.69</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>0.52</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>1.31</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>1.01</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
</table>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hawaii's economy continued to show
slight improvement over last year.&nbsp; The
statewide unemployment rate for the first five months of 2001 averaged 4.3%, a
decrease from the 4.5% reported during the same period last year.&nbsp; Through May 2001, statewide job growth was
2.3%.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Partially offsetting this improvement
was a decrease in hotel occupancy rates in June 2001 to 74%, compared to 80%
for the same period last year. This decrease was primarily driven by economic
conditions on the U. S. mainland and in Japan. Domestic visitor arrivals for
the first half of 2001 decreased by 1.2% from the same period last year, while
foreign visitor arrivals were down by 2.1%.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dollar volume of residential real estate
sales in the state of Hawaii for the first six months of 2001 totaled $952.6
million, an increase of 4.3% over the same period last year.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hawaii's economic environment has had,
and will likely continue to have, a direct effect on our Company's performance.
While the Hawaii economy is expected to grow modestly in 2001, actual results
in tourism, employment and the real estate market could affect loan demand,
deposit growth, provision for loan losses, noninterest income and noninterest
expense.&nbsp; Accordingly, the results of
operations of the Company for the remainder of 2001 may be directly impacted by
the ability of the Hawaii economy to sustain the positive trends experienced
during the last several years.</font></p>

<page>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2>Certain matters
discussed in this report may constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.&nbsp; These forward-looking statements relate to,
among other things, net interest income, net interest margin, the levels of
nonperforming loans, loan losses and the allowance for loan losses, noninterest
income and noninterest expense.&nbsp;
Important factors that could cause the results to differ from those
discussed in this report include, but are not limited to, changes in market
interest rates, general business conditions in the state of Hawaii, the real
estate market in Hawaii, competitive conditions among financial institutions,
regulatory changes in the financial services industry, and other risks detailed
in the Company's reports filed with the Securities and Exchange Commission,
including the Annual Report on Form 10-K for the year ended December 31, 2000.</font></p>

<p><font size=2>Results
of Operations</font></p>

<p><font size=2>Net
Interest Income</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A comparison of net interest income for
the three and six months ended June 30, 2001 and 2000 is set forth below on a
taxable equivalent basis using an assumed income tax rate of 35%.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest income, when expressed as a
percentage of average interest earning assets, is referred to as &quot;net
interest margin.&quot;</font></p>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="30%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=center width="32%" colspan=5 valign=bottom><font size=2>Three Months Ended<br>
  June 30,</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="32%" colspan=5 valign=bottom><font size=2>Six Months Ended<br>
  June 30,</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="30%" colspan=2 valign=bottom><font size=2>(Dollars in thousands)</font></td>
  <td  align=center width="15%" colspan=2 valign=bottom><font size=2>2001</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=2 valign=bottom><font size=2>2000</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=2 valign=bottom><font size=2>2001</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=2 valign=bottom><font size=2>2000</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="30%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Interest
  income</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>33,097</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>31,072</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>67,670</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>60,319</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="30%" colspan=2 valign=bottom><font size=2>Interest
  expense</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>13,864</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>12,920</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>29,208</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>24,894</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="26%" valign=bottom bgcolor="#cceeff"><font size=2>Net
  interest income</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>19,233</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>18,152</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>38,462</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>35,425</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="30%" colspan=2 valign=bottom><font size=2>Net
  interest margin</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>4.60</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>4.71</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>4.60</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>4.64</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=27></td>
  <td width=190></td>
  <td width=56></td>
  <td width=53></td>
  <td width=18></td>
  <td width=57></td>
  <td width=51></td>
  <td width=18></td>
  <td width=51></td>
  <td width=57></td>
  <td width=18></td>
  <td width=52></td>
  <td width=56></td>
  <td width=17></td>
 </tr>
</table>

<page>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2>Interest income
increased by $2.0 million or 6.5% in the second quarter of 2001 and by $7.4 or
12.2% in the first half of 2001 compared to the same periods in 2000, due
primarily to an increase in average volumes.&nbsp;
Average interest earning assets of $1,671.9 million for the second quarter
and first half of 2001 increased by $129.2 million or 8.4% and $145.4 million
or 9.5%, respectively, due primarily to increases in loans.&nbsp; Yield on interest earning assets of 7.92%
for the second quarter of 2001 decreased from 8.06% for the same period in 2000
due to the decline in market interest rates during the first half of 2001.&nbsp; The yield on interest earning assets of
8.09% for the first half of 2001 increased from 7.90% for the first half of
2000 due to net interest recoveries in 2001 of $668,000 on nonaccrual and
charged-off loans compared to net interest reversals in 2000 of $457,000.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and fees on loans increased by
$1.2 million or 4.9% and $5.4 million or 11.1% in the second quarter and first
half of 2001, respectively, compared to the same periods in 2000 due to
increases in average loan balances and the interest recoveries previously
discussed.&nbsp; Interest and dividends on
investment securities increased by $225,000 or 4.0% and $1.2 million or 11.6%
mainly due to average balance increases.&nbsp;
Interest on interest-bearing deposits in other banks also increased by
$522,000 and $630,000, respectively, due to increases in average balances.</font></p>

<page>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2>Interest expense for the
second quarter and first half of 2001 increased by $944,000 or 7.3% and $4.3
million or 17.3%, respectively, compared to the same periods in 2001 due to
higher average interest-bearing liabilities and the higher proportion of
balances in relatively higher-rate certificates of deposit and long-term
debt.&nbsp; Average interest-bearing
liabilities totaled $1,397.3 million in the second quarter of 2001 and $1,400.3
million in the first half of 2001, increasing by $117.5 million or 9.2% and
$133.0 million or 10.5%, respectively, due to increases in large certificates
of deposit and in long-term debt. The average rate on interest-bearing
liabilities for the second quarter of 2001 decreased to 3.97% from 4.04% in the
second quarter of 2000, due in part to the decline in market interest rates in
2001.&nbsp; The average rate for the first
half of 2001 increased to 4.17% from 3.93% in 2000.&nbsp; As discussed earlier, this increase was due primarily to the
change in the composition of the interest-bearing liabilities during the
period.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The resultant net interest income for
the second quarter and first half of 2001 increased by $1.1 million or 6.0% and
$3.0 million or 8.6%, respectively, over the same periods in 2000.&nbsp; Net interest margin declined to 4.60% for
the second quarter and first half of 2001 from 4.71% and 4.64%, respectively,
in 2000. Strong competition for both loans and core deposits is expected to
continue and may create additional pressure on net interest margin in the
future.</font></p>

<p><font size=2>Provision
for Loan Losses</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for loan losses is determined
by Management's ongoing evaluation of the loan portfolio and assessment of the
ability of the allowance for loan losses to cover inherent losses.&nbsp; The Company, considering current information
and events regarding a borrower's ability to repay its obligations, treats a
loan as impaired when it is probable that the Company will be unable to collect
all amounts due according to the contractual terms of the loan agreement.&nbsp; When a loan is considered to be impaired,
the amount of impairment is measured based on the present value of expected
future cash flows discounted at the loan's effective interest rate or, if the
loan is considered to be collateral dependent, based on the fair value of the
collateral.&nbsp; Impairment losses are
included in the allowance for loan losses through a charge to the provision for
loan losses.&nbsp; For smaller-balance
homogeneous loans, primarily residential real estate and consumer loans, the
allowance for loan losses is based upon Management's evaluation of the quality,
character and risks inherent in the loan portfolio, current and projected
economic conditions, and historical loan loss experience.&nbsp; The allowance is increased by provisions
charged to operating expense and reduced by loan charge-offs, net of
recoveries.</font></p>

<page>


<p>&nbsp;</p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following table sets forth certain
information with respect to the Company's allowance for loan losses as of the
dates and for the periods indicated.</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="30%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="32%" colspan=5 valign=bottom><font size=2>Three Months Ended<br>
  June 30,</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="32%" colspan=5 valign=bottom><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Six
  Months Ended<br>
  June 30,</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="30%" colspan=3 valign=bottom><font size=2>(Dollars
  in thousands)</font></td>
  <td  align=center width="15%" colspan=2 valign=bottom><font size=2>2001</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=2 valign=bottom><font size=2>2000</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=2 valign=bottom><font size=2>2001</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=2 valign=bottom><font size=2>2000</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="30%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Allowance
  for loan losses:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="28%" colspan=2 valign=bottom><font size=2>Balance
  at beginning of period</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>23,254</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>21,886</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>22,612</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>20,768</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="28%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Provision
  for loan losses</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>900</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,000</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,650</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>2,000</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="28%" colspan=2 valign=bottom><font size=2>Loan
  charge-offs:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="28%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Real
  estate:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="26%" valign=bottom><font size=2>Mortgage-commercial</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>200</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>200</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="26%" valign=bottom bgcolor="#cceeff"><font size=2>Mortgage-residential</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>27</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>418</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>441</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>768</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="28%" colspan=2 valign=bottom><font size=2>Commercial,
  financial and agricultural</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>101</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>119</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="28%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Consumer</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>136</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>133</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>229</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>216</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="28%" colspan=2 valign=bottom><font size=2>Other</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>1</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>1</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>12</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="26%" valign=bottom bgcolor="#cceeff"><font size=2>Total
  loan charge-offs</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>364</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>652</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>871</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,115</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="28%" colspan=2 valign=bottom><font size=2>Recoveries:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="28%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Real
  estate:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="26%" valign=bottom><font size=2>Mortgage-commercial</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>242</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>244</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>513</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="26%" valign=bottom bgcolor="#cceeff"><font size=2>Mortgage-residential</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>26</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>46</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>74</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>52</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="28%" colspan=2 valign=bottom><font size=2>Commercial,
  financial and agricultural</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>60</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>318</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>72</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="28%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Consumer</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>32</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>50</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>63</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>100</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="28%" colspan=2 valign=bottom><font size=2>Other</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="26%" valign=bottom bgcolor="#cceeff"><font size=2>Total
  recoveries</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>300</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>156</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>699</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>737</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="28%" colspan=2 valign=bottom><font size=2>Net
  loan charge-offs</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>64</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>496</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>172</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>378</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="28%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Balance
  at end of period</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>24,090</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>22,390</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>24,090</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>22,390</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="30%" colspan=3 valign=bottom><font size=2>Annualized
  ratio of net loan charge-offs to average loans</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>0.02</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>0.17</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>0.03</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>0.06</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=13></td>
  <td width=13></td>
  <td width=190></td>
  <td width=64></td>
  <td width=45></td>
  <td width=18></td>
  <td width=57></td>
  <td width=51></td>
  <td width=18></td>
  <td width=59></td>
  <td width=49></td>
  <td width=18></td>
  <td width=61></td>
  <td width=48></td>
  <td width=17></td>
 </tr>
</table>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The provision for loan losses of
$900,000 for the second quarter and $1.7 million for the first half of 2001
decreased by 10.0% and 17.5%, respectively, from the amounts accrued in the
same periods in 2000.&nbsp; For the second
quarter, net loan charge-offs of $64,000 in 2001 and $496,000 in 2000, when
expressed as an annualized percentage of average total loans, were 0.02% and
0.17%, respectively.&nbsp; Loan charge-offs
during the second quarter of 2001 were comprised primarily of two commercial
real estate loans and various consumer loans.&nbsp;
Loan recoveries during the second quarter consisted primarily of one
commercial real estate loan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The allowance for loan losses expressed
as a percentage of total loans was 1.92% at June 30, 2001, increasing from
1.75% at December 31, 2000.&nbsp; The
increase in this ratio was due to the sale of $54 million in residential
mortgage loans.&nbsp; Considering the relatively
low level of net loan charge-offs and decrease in total nonaccrual and
delinquent loans during the year, Management believes that the allowance for
loan losses was adequate to cover the credit risks inherent in the loan
portfolio.&nbsp; However, any deterioration
in economic conditions in the state of Hawaii could adversely affect borrowers'
ability to repay, collateral values and, consequently, the level of
nonperforming loans and provision for loan losses.</font></p>

<p><font size=2>Nonperforming
Assets</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following table sets forth
nonperforming assets and accruing loans delinquent for 90 days or more at the
dates indicated.</font></p>

<page>


<p>&nbsp;</p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr height=56>
  <td  align=center width="48%" colspan=8 height=56 valign=bottom><font size=2>(Dollars in thousands)</font></td>
  <td  align=center width="15%" colspan=2 height=56 valign=bottom><font size=2>June 30,<br>
  2001</font></td>
  <td  align=center width="2%" height=56 valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=2 height=56 valign=bottom><font size=2>December 31,<br>
  2000</font></td>
  <td  align=center width="2%" height=56 valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=2 height=56 valign=bottom><font size=2>June 30,<br>
  2000</font></td>
  <td  align=center width="1%" height=56 valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="48%" colspan=8 valign=bottom bgcolor="#cceeff"><font size=2>Nonaccrual
  loans:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="46%" colspan=7 valign=bottom><font size=2>Real
  estate:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="4%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="44%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Mortgage-commercial</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>153</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>2,258</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>1,893</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="4%" colspan=5 valign=bottom>&nbsp;</td>
  <td width="44%" colspan=3 valign=bottom><font size=2>Mortgage-residential</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>1,358</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>2,069</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>3,016</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="46%" colspan=7 valign=bottom bgcolor="#cceeff"><font size=2>Commercial,
  financial and agricultural</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>3,577</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>4,197</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>2,161</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="6%" colspan=7 valign=bottom>&nbsp;</td>
  <td width="42%" valign=bottom><font size=2>Total
  nonaccrual loans</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>5,088</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>8,524</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>7,070</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=8 valign=bottom bgcolor="#cceeff"><font size=2>Other
  real estate</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>990</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,792</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,248</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="46%" colspan=7 valign=bottom><font size=2>Total
  nonperforming assets</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>6,078</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>10,316</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>8,318</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=8 valign=bottom bgcolor="#cceeff"><font size=2>Loans
  delinquent for 90 days or more:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="46%" colspan=7 valign=bottom><font size=2>Real
  estate:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="4%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="44%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Mortgage-commercial</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>293</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="4%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="44%" colspan=4 valign=bottom><font size=2>Mortgage-residential</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>656</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>653</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>442</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="46%" colspan=7 valign=bottom bgcolor="#cceeff"><font size=2>Commercial,
  financial and agricultural</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>90</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>850</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>192</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="46%" colspan=7 valign=bottom><font size=2>Consumer</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>23</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>24</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=6 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="42%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Total
  loans delinquent for 90 days or more</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>769</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,527</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>927</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=8 valign=bottom><font size=2>Restructured
  loans still accruing interest:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="46%" colspan=7 valign=bottom bgcolor="#cceeff"><font size=2>Real
  estate:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="4%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="44%" colspan=5 valign=bottom><font size=2>Mortgage-commercial</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>445</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>466</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>485</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="44%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Total
  restructured loans still accruing interest</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>445</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>466</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>485</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=8 valign=bottom><font size=2>Total
  nonperforming assets, loans delinquent for 90 days or more and restructured
  loans still accruing interest</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>7,292</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>12,309</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>9,730</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=8 valign=bottom bgcolor="#cceeff"><font size=2>Total
  nonperforming assets as a percentage of loans and other real estate</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>0.48</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>%</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>0.80</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>%</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>0.68</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>%</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=8 valign=bottom><font size=2>Total
  nonperforming assets and loans delinquent for 90 days or more as a percentage
  of loans and other real estate</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>0.54</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>0.92</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>0.76</font></td>
  <td width="1%" valign=bottom><font size=2>%</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=8 valign=bottom bgcolor="#cceeff"><font size=2>Total
  nonperforming assets, loans delinquent for 90 days or more and restructured
  loans still accruing interest as a percentage of loans and other real estate</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>0.58</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>%</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>0.95</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>%</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>0.80</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>%</font></td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=13></td>
  <td width=14></td>
  <td width=2></td>
  <td width=1></td>
  <td width=1></td>
  <td width=12></td>
  <td width=1></td>
  <td width=305></td>
  <td width=60></td>
  <td width=48></td>
  <td width=18></td>
  <td width=62></td>
  <td width=46></td>
  <td width=18></td>
  <td width=64></td>
  <td width=44></td>
  <td width=12></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<page>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2>Nonperforming assets,
loans delinquent for 90 days or more and restructured loans still accruing
interest totaled $7.3 million at June 30, 2001, a decrease of $5.0 million or
40.8% from year-end 2000.&nbsp; Nonaccrual loans
totaled $5.1 million at June 30, 2001, a decrease of 40.3% from year-end 2000,
and included a $3.0 million commercial loan and a $0.9 million loan secured by
multi-family residential property.&nbsp;
Nonaccrual commercial mortgage loans totaled $153,000 at June 30, 2001,
a decrease of $2.1 million from year-end 2000.&nbsp;
The majority of this decrease was due to loan payoffs of $1.5
million.&nbsp; Loans delinquent for 90 days
or more and still accruing interest totaled $769,000 at June 30, 2001, a 49.6%
decrease from year-end 2000, and consisted primarily of residential mortgage
loans.&nbsp; Impaired loans, representing
seven loans at June 30, 2001, totaled $7.4 million and at year-end 2000 totaled
$11.3 million.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management continues to closely monitor
loan delinquencies and work with borrowers to resolve loan problems; however,
any worsening of current economic conditions in the state of Hawaii may result
in future increases in nonperforming assets, delinquencies, net loan
charge-offs, provision for loan losses and noninterest expense.</font></p>

<p><font size=2>Other
Operating Income</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other operating income totaled
$3.5 million for the second quarter of 2001, an increase of 28.8% over the same
period last year.&nbsp; This increase was
primarily driven by investment securities gains and losses.&nbsp; Excluding the impact of the securities
transactions, total other operating income was comparable to the second quarter
of 2000.&nbsp; On a year-to-date basis, other
operating income excluding securities gains and losses totaled $6.5 million for
2001, compared to $7.9 million for the same period last year.&nbsp; This decrease was primarily attributed to
the $1.9 million gain on the sale of the merchant portfolio in the first
quarter of last year. Additionally, loan sales generated $700,000 million in
gains in 2001.</font></p>

<page>


<p><br>
<font size=2>Other Operating Expense</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other operating expense was $12.5
million for the second quarter of 2001, an increase of 2.9% over the same
period last year.&nbsp; This increase was
primarily attributed to an increase in salaries and benefits of $811,000 or
14.1% over last year&#146;s second quarter.&nbsp;
In the second quarter of 2000, restructuring charges totaling $600,000
million were reversed.&nbsp; On a
year-to-date basis, total other operating expense was $26.0 million, an
increase of 2.1% over the same period last year. &nbsp;Salaries and benefits totaled $13.5 million for the first six
months of 2001, an increase of 9.5% over the same period last year.&nbsp; This increase was primarily due to increases
in incentive accruals in 2001 and the reversal of restructuring charges in 2000.&nbsp; In the first quarter of 2001, an expense of
$642,000 was recorded due to an early payoff of $20 million in borrowings from
the Federal Home Loan Bank of Seattle.&nbsp;
In the first quarter of 2000, expenses of $358,000 related to merchant
servicing fees and $480,000 related to early termination of a servicing
agreement for the sold merchant services portfolio were recognized.</font></p>

<p><font size=2>Income
Taxes</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The effective tax rates for the second
quarter and first six months of 2001 were 35.84% and 35.76%, respectively.&nbsp; For 2000, the comparable rates were 35.24%
and 35.26%.</font></p>

<p><font size=2>Financial
Condition</font></p>

<page>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2>Total assets at June 30,
2001 was $1.80 billion, a decrease of $19.8 million or 1.1% from year-end
2000.&nbsp; In the second quarter of 2001,
the Company acquired the remaining interest in CKSS Associates, a partnership
in which the Company already held a 50% partnership interest.&nbsp; This transaction accounted for the majority
of the increase noted in premises and equipment as of June 30, 2001.&nbsp; Also occurring in 2001 was the sale of $54
million in residential mortgage loans.&nbsp;
These loans were sold to adjust the Company&#146;s interest rate profile and
to enhance liquidity.&nbsp; Proceeds from the
sale were used to reduce short-term borrowings by $40 million and long-term
debt by $20 million.&nbsp; As mentioned
earlier, early payoff of long-term debt generated an interest penalty of
$642,000, which is included in other expense.&nbsp;
The debt prepayment was part of the Company&#146;s strategy to increase the
repricing of its liabilities in the declining interest rate environment. Net
loans totaled $1.23 billion as of June 30, 2001, a decrease from $1.27 billion
reported at year-end 2000. Investment securities totaled $355.36 million, a
decrease of $29.3 million or 7.6%.&nbsp;
Total deposits at June 30, 2001 were $1.41 billion, an increase of $42.9
million or 3.1%.&nbsp; Core deposits
(noninterest-bearing demand, interest-bearing demand and savings deposits, and
time deposits under $100,000) at June 30, 2001 were $1.0 billion, an increase
from $976 million at March 31, 2001.&nbsp;
Competition for deposits remains strong, and will continue to challenge
the bank's ability to gather low-cost retail funds.</font></p>

<p><font size=2>Capital
Resources</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stockholders' equity was $146.7 million
at June 30, 2001, an increase of $3.4 million or 2.4% from December 31,
2000.&nbsp; When expressed as a percentage of
total assets, stockholders' equity increased to 8.16% at June 30, 2001, from
7.89% at year-end 2000. Book value per share at June 30, 2001 was $17.83,
compared to $16.93 at year-end 2000.</font></p>

<page>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2>Stock repurchases
totaling $6.9 million offset increases due to earnings accumulation and
unrealized gains on the available for sale investment securities
portfolio.&nbsp; In the first six months of
2001, the Company repurchased 255,000 shares of common stock. The Company is
currently in the fifth segment of its repurchase program, which began in 1998.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On June 18, 2001, the board of directors
declared a second quarter cash dividend of $0.16 per share, a 6.7% increase
over the dividend declared in the second quarter of 2000.&nbsp; Dividends declared in the second quarter of
2001 totaled $1,316,000,&nbsp; compared with
$1,318,000 in the second quarter of 2000.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company's objective with respect to
capital resources is to maintain a level of capital that will support sustained
asset growth and anticipated risks.&nbsp;
Furthermore, the Company seeks to ensure that regulatory guidelines and
industry standards for well-capitalized institutions are met.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Regulations on capital adequacy
guidelines adopted by the Federal Reserve Board (the &quot;FRB&quot;) and the
Federal Deposit Insurance Corporation (the &quot;FDIC&quot;) are as
follows.&nbsp; An institution is required to
maintain a minimum ratio of qualifying total capital to risk-adjusted assets of
8% and a minimum ratio of Tier 1 capital to risk-adjusted assets of 4%.&nbsp; In addition to the risk-based guidelines,
federal banking regulators require banking organizations to maintain a minimum
amount of Tier 1 capital to total assets, referred to as the leverage
ratio.&nbsp; For a banking organization rated
in the highest of the five categories used by regulators to rate banking
organizations, the minimum leverage ratio of Tier 1 capital to total assets
must be 3%.&nbsp; In addition to these
uniform risk-based capital guidelines and leverage ratios that apply across the
industry, the regulators have the discretion to set individual minimum capital
requirements for specific institutions at rates significantly above the minimum
guidelines and ratios.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following table sets forth the
Company&#146;s capital ratios and capital adequacy requirements applicable to the
Company as of the dates indicated.</font></p>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="25%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=center width="22%" colspan=4 valign=bottom><font size=2>Actual</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" colspan=4 valign=bottom><font size=2>Minimum required for
  capital adequacy purposes</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" colspan=4 valign=bottom><font size=2>Excess</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="23%" valign=bottom><font size=2>(Dollars
  in thousands)</font></td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Amount</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" valign=bottom><font size=2>Ratio</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Amount</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" valign=bottom><font size=2>Ratio</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Amount</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" valign=bottom><font size=2>Ratio</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="25%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>At
  June 30, 2001:</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="23%" valign=bottom><font size=2>Leverage
  capital</font></td>
  <td  align=right width="1%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>141,978</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>8.03</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>70,689</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>4.00</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>71,289</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>4.03</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>Tier
  1 risk-based capital</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>141,978</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>9.48</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>59,926</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>4.00</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>82,052</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>5.48</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="23%" valign=bottom><font size=2>Total
  risk-based capital</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>160,771</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>10.73</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>119,852</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>8.00</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>40,919</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>2.73</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="25%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>At
  December 31, 2000:</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="23%" valign=bottom><font size=2>Leverage
  capital</font></td>
  <td  align=right width="1%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>140,222</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>7.97</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>70,362</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>4.00</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>69,860</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>3.97</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>Tier
  1 risk-based capital</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>140,222</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>9.63</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>58,215</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>4.00</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>82,007</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>5.63</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="23%" valign=bottom><font size=2>Total
  risk-based capital</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>158,469</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>10.89</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>116,431</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>8.00</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>42,038</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>2.89</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
</table>

<page>


<p>&nbsp;</p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In addition, FDIC-insured institutions
such as the Bank must maintain leverage, Tier 1 and total risk-based capital
ratios of at least 5%, 6% and 10%, respectively, to be considered &quot;well
capitalized&quot; under the prompt corrective action provisions of the FDIC
Improvement Act of 1991.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following table sets forth the
Bank&#146;s capital ratios and capital requirements to be considered &quot;well
capitalized&quot; as of the dates indicated.</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="25%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=center width="22%" colspan=4 valign=bottom><font size=2>Actual</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" colspan=4 valign=bottom><font size=2>Minimum required to be<br>
  well-capitalized</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" colspan=4 valign=bottom><font size=2>Excess</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="25%" colspan=2 valign=bottom><font size=2>(Dollars
  in thousands)</font></td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Amount </font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" valign=bottom><font size=2>Ratio </font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Amount </font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" valign=bottom><font size=2>Ratio</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Amount</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" valign=bottom><font size=2>Ratio</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="25%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>At
  June 30, 2001:</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="23%" valign=bottom><font size=2>Leverage
  capital</font></td>
  <td  align=right width="1%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>139,084</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>7.88</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>88,247</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>5.00</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>50,837</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>2.88</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>Tier
  1 risk-based capital</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>139,084</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>9.27</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>89,977</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>6.00</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>49,107</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>3.27</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="23%" valign=bottom><font size=2>Total
  risk-based capital</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>157,895</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>10.53</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>149,961</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>10.00</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>7,934</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>0.53</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="25%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>At
  December 31, 2000:</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="23%" valign=bottom><font size=2>Leverage
  capital</font></td>
  <td  align=right width="1%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>136,563</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>7.77</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>87,837</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>5.00</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>48,726</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>2.77</font></td>
  <td width="2%" valign=bottom><font size=2>%</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>Tier
  1 risk-based capital</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>136,563</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>9.38</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>87,356</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>6.00</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>49,207</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>3.38</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="23%" valign=bottom><font size=2>Total
  risk-based capital</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>154,817</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>10.63</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>145,594</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>10.00</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>9,223</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>0.63</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
</table>

<page>


<p><font size=2>Asset/Liability
Management and Liquidity</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company's asset/liability management
and liquidity are discussed in the 2000 Annual Report to Shareholders.&nbsp; No significant changes have occurred during
the three and six months ended June 30, 2001.</font></p>

<p><font size=2>Item
3.&nbsp;&nbsp;&nbsp; Quantitative and Qualitative
Disclosures About Market<br>
Risk</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company discussed the nature and
extent of market risk exposure in the 2000 Annual Report to Shareholders.&nbsp; No significant changes have occurred during
the three and six months ended June 30, 2001.</font></p>

<page>


<p align=center><font size=2>PART
II.&nbsp; OTHER INFORMATION</font></p>

<p><font size=2>Items
1 to 5.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Items 1 to 5 are omitted pursuant to
instructions to Part II.</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="11%" valign=top><font size=2>Item 6.</font></td>
  <td width="88%" valign=top><font size=2>Exhibits and Reports on Form 8-K</font></td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="88%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top><font size=2>(a)</font></td>
  <td width="88%" valign=top><font size=2>Exhibits</font></td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="88%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="88%" valign=top><font size=2>None</font></td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="88%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top><font size=2>(b)</font></td>
  <td width="88%" valign=top><font size=2>Reports on Form 8-K</font></td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="88%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="88%" valign=top><font size=2>The Company filed no reports on Form 8-K
  during the second quarter of 2001.</font></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<page>


<p align=center><font size=2>SIGNATURES</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of the
Securities Exchange Act&nbsp; of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="15%" colspan=2 valign=top>&nbsp;</td>
  <td width="31%" valign=top>&nbsp;</td>
  <td width="53%" valign=top><font size=2>CPB INC.</font></td>
 </tr>
 <tr>
  <td width="15%" colspan=2 valign=top>&nbsp;</td>
  <td width="31%" valign=top>&nbsp;</td>
  <td width="53%" valign=top><font size=2>(Registrant)</font></td>
 </tr>
 <tr>
  <td width="15%" colspan=2 valign=top>&nbsp;</td>
  <td width="31%" valign=top>&nbsp;</td>
  <td width="53%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=top>&nbsp;</td>
  <td width="11%" valign=top><font size=2>Date:</font></td>
  <td width="31%" valign=top><font size=2>August 9, 2001</font></td>
  <td width="53%" valign=top><font size=2>/s/ Joichi Saito</font></td>
 </tr>
 <tr>
  <td width="15%" colspan=2 valign=top>&nbsp;</td>
  <td width="31%" valign=top>&nbsp;</td>
  <td width="53%" valign=top><font size=2>Joichi Saito</font></td>
 </tr>
 <tr>
  <td width="15%" colspan=2 valign=top>&nbsp;</td>
  <td width="31%" valign=top>&nbsp;</td>
  <td width="53%" valign=top><font size=2>Chairman of the Board and</font></td>
 </tr>
 <tr>
  <td width="15%" colspan=2 valign=top>&nbsp;</td>
  <td width="31%" valign=top>&nbsp;</td>
  <td width="53%" valign=top><font size=2>Chief Executive Officer</font></td>
 </tr>
 <tr>
  <td width="15%" colspan=2 valign=top>&nbsp;</td>
  <td width="31%" valign=top>&nbsp;</td>
  <td width="53%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=top>&nbsp;</td>
  <td width="11%" valign=top><font size=2>Date:</font></td>
  <td width="31%" valign=top><font size=2>August 9, 2001</font></td>
  <td width="53%" valign=top><font size=2>/s/ Neal K. Kanda</font></td>
 </tr>
 <tr>
  <td width="15%" colspan=2 valign=top>&nbsp;</td>
  <td width="31%" valign=top>&nbsp;</td>
  <td width="53%" valign=top><font size=2>Neal K. Kanda</font></td>
 </tr>
 <tr>
  <td width="15%" colspan=2 valign=top>&nbsp;</td>
  <td width="31%" valign=top>&nbsp;</td>
  <td width="53%" valign=top><font size=2>Vice President and Treasurer</font></td>
 </tr>
 <tr>
  <td width="15%" colspan=2 valign=top>&nbsp;</td>
  <td width="31%" valign=top>&nbsp;</td>
  <td width="53%" valign=top><font size=2>(Principal Financial and</font></td>
 </tr>
 <tr>
  <td width="15%" colspan=2 valign=top>&nbsp;</td>
  <td width="31%" valign=top>&nbsp;</td>
  <td width="53%" valign=top><font size=2>Accounting Officer)</font></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<p align=center><font size=2>CPB
INC. AND SUBSIDIARY</font></p>

<p align=center><a name=ConsolidatedBalanceSheets><font size=2>CONSOLIDATED
BALANCE SHEETS</font></a></p>

<p align=center><font size=2>(Unaudited)</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>(Dollars
  in thousands, except per share data)</font></td>
  <td  align=center width="15%" colspan=2 valign=bottom><font size=2>June 30,<br>&nbsp;2001</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=2 valign=bottom><font size=2>December 31,<br>&nbsp;2000</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>ASSETS</font></td>
  <td  align=center width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>Cash
  and due from banks</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>42,659</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>52,207</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Interest-bearing
  deposits in other banks</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>26,751</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>11,506</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>Federal
  funds sold</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>25,000</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>15,000</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Investment
  securities:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom><font size=2>Held
  to maturity, at cost (fair value of $80,295 at June 30, 2001 and $86,566 at
  December 31, 2000)</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>78,810</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>86,056</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Available
  for sale, at fair value</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>276,554</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>279,714</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom><font size=2>Available
  for sale securities pledged to creditor, at fair value</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>18,849</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" valign=bottom bgcolor="#cceeff"><font size=2>Total
  investment securities</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>355,364</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>384,619</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>Loans</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>1,255,402</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>1,291,190</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Less
  allowance for loan losses</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>24,090</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>22,612</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="61%" valign=bottom><font size=2>Net
  loans</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>1,231,312</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>1,268,578</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Premises
  and equipment</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>61,489</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>23,319</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>Accrued
  interest receivable</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>9,579</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>10,646</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Investment
  in unconsolidated subsidiaries</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,376</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>8,924</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>Due
  from customers on acceptances</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>13</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Other
  real estate</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>990</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,792</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>Other
  assets</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>42,573</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>40,327</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" valign=bottom bgcolor="#cceeff"><font size=2>Total
  assets</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>1,797,106</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>1,816,918</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>LIABILITIES AND
  STOCKHOLDERS' EQUITY</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Deposits:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom><font size=2>Noninterest-bearing
  deposits</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>213,450</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>199,625</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Interest-bearing
  deposits</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,192,549</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,163,441</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="61%" valign=bottom><font size=2>Total
  deposits</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>1,405,999</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>1,363,066</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Short-term
  borrowings</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>4,000</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>56,720</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>Long-term
  debt</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>199,727</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>220,970</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Bank
  acceptances outstanding</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>13</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>Other
  liabilities</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>40,634</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>32,850</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" valign=bottom bgcolor="#cceeff"><font size=2>Total
  liabilities</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,650,373</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,673,606</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>Stockholders'
  equity:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Preferred
  stock, no par value, authorized 1,000,000 shares, none issued</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom><font size=2>Common
  stock, no par value; authorized 50,000,000 shares; issued and outstanding
  8,227,568 shares at June 30, 2001, and 8,464,468 shares at December 31, 2000</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>6,269</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>6,172</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Surplus</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>45,848</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>45,848</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom><font size=2>Retained
  earnings</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>89,951</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>88,232</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Accumulated
  other comprehensive income, net of taxes</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>4,665</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>3,060</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="61%" valign=bottom><font size=2>Total
  stockholders' equity</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>146,733</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>143,312</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" valign=bottom bgcolor="#cceeff"><font size=2>Total
  liabilities and stockholders' equity</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>1,797,106</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>1,816,918</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=13></td>
  <td width=13></td>
  <td width=442></td>
  <td width=44></td>
  <td width=64></td>
  <td width=18></td>
  <td width=46></td>
  <td width=63></td>
  <td width=18></td>
 </tr>
</table>

<p><font size=2>See
accompanying notes to consolidated financial statements.</font></p>

<p align=center><font size=2>&nbsp;</font></p>

<page>


<p align=center><font size=2>CPB
INC. AND SUBSIDIARY</font></p>

<p align=center><a name=ConsolidatedStatementsOfIncome><font size=2>CONSOLIDATED STATEMENTS
OF INCOME</font></a></p>

<p align=center><font size=2>(Unaudited)</font></p>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="41%" colspan=7 valign=bottom>&nbsp;</td>
  <td  align=center width="27%" colspan=5 valign=bottom><font size=2>Three Months Ended
  June 30,</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="27%" colspan=5 valign=bottom><font size=2>Six Months Ended June
  30,</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="41%" colspan=7 valign=bottom><font size=2>(In thousands, except per share data)</font></td>
  <td  align=center width="12%" colspan=2 valign=bottom><font size=2>2001</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="12%" colspan=2 valign=bottom><font size=2>2000</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="12%" colspan=2 valign=bottom><font size=2>2001</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="12%" colspan=2 valign=bottom><font size=2>2000</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="41%" colspan=7 valign=bottom bgcolor="#cceeff"><font size=2>Interest
  income:</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom><font size=2>Interest
  and fees on loans</font></td>
  <td  align=right width="5%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>26,349</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="4%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>25,122</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="5%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>54,275</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="5%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>48,846</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Interest
  and dividends on investment securities:</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="4%" colspan=6 valign=bottom>&nbsp;</td>
  <td width="36%" valign=bottom><font size=2>Taxable
  interest</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>4,834</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>4,584</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>10,039</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>8,794</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="4%" colspan=6 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="36%" valign=bottom bgcolor="#cceeff"><font size=2>Tax-exempt
  interest</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>610</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>614</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,199</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,205</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="4%" colspan=6 valign=bottom>&nbsp;</td>
  <td width="36%" valign=bottom><font size=2>Dividends</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>354</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>375</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>678</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>677</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Interest
  on deposits in other banks</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>564</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>42</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>771</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>141</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom><font size=2>Interest
  on Federal funds sold and securities purchased under agreements to resell</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>57</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>5</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>62</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>7</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="4%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="36%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Total
  interest income</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>32,768</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>30,742</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>67,024</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>59,670</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="41%" colspan=7 valign=bottom><font size=2>Interest
  expense:</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Interest
  on deposits</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>11,000</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>10,182</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>22,514</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>19,902</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom><font size=2>Interest
  on short-term borrowings</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>138</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>764</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>570</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>1,445</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Interest
  on long-term debt</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>2,726</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,974</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>6,124</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>3,547</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="4%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="36%" colspan=3 valign=bottom><font size=2>Total
  interest expense</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>13,864</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>12,920</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>29,208</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>24,894</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="4%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="36%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Net
  interest income</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>18,904</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>17,822</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>37,816</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>34,776</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="41%" colspan=7 valign=bottom><font size=2>Provision
  for loan losses</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>900</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>1,000</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>1,650</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>2,000</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Net
  interest income after provision for loan losses</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>18,004</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>16,822</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>36,166</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>32,776</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="41%" colspan=7 valign=bottom><font size=2>Other
  operating income:</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Income from fiduciary
  activities</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>269</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>262</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>570</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>498</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom><font size=2>Service
  charges on deposit accounts</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>941</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>753</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>1,798</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>1,534</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Other
  service charges and fees</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,042</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>985</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>2,007</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>2,217</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom><font size=2>Equity
  in earnings of</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>unconsolidated
  subsidiaries</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>94</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>160</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>217</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>302</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom><font size=2>Fees
  on foreign exchange</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>112</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>128</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>226</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>281</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Investment
  securities gains (losses)</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>437</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(307</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>617</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(667</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom><font size=2>Gain
  on sale of merchant servicing portfolio</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>1,850</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Other</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>575</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>714</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,716</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,187</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="37%" colspan=4 valign=bottom><font size=2>Total
  other operating income</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>3,470</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>2,695</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>7,151</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>7,202</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="41%" colspan=7 valign=bottom bgcolor="#cceeff"><font size=2>Other
  operating expense:</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom><font size=2>Salaries
  and employee benefits</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>6,559</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>5,748</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>13,461</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>12,297</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Net
  occupancy</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,375</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,580</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>2,951</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>3,171</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom><font size=2>Equipment</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>662</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>710</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>1,371</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>1,377</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Other</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>3,878</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>4,083</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>8,253</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>8,650</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="37%" colspan=5 valign=bottom><font size=2>Total
  other operating expense</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>12,474</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>12,121</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>26,036</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>25,495</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="37%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>Income
  before income taxes</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>9,000</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>7,396</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>17,281</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>14,483</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="41%" colspan=7 valign=bottom><font size=2>Income
  taxes</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>3,226</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>2,606</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>6,179</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>5,107</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="37%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>Net
  income</font></td>
  <td  align=right width="5%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>5,774</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="4%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>4,790</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="5%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>11,102</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="5%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>9,376</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="41%" colspan=7 valign=bottom><font size=2>Per
  share data:</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Basic
  earnings per share</font></td>
  <td  align=right width="5%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>0.70</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="4%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>0.53</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="5%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>1.33</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="5%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>1.03</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom><font size=2>Diluted
  earnings per share</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>0.69</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>0.52</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>1.31</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>1.01</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="39%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Cash
  dividends declared</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>0.16</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>0.15</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>0.32</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>0.30</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="41%" colspan=7 valign=bottom><font size=2>Basic
  weighted average shares outstanding</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>8,227</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>9,022</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>8,332</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>9,141</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="41%" colspan=7 valign=bottom bgcolor="#cceeff"><font size=2>Diluted
  weighted average shares outstanding</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>8,391</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>9,176</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>8,483</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>9,286</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=13></td>
  <td width=14></td>
  <td width=1></td>
  <td width=3></td>
  <td width=1></td>
  <td width=1></td>
  <td width=265></td>
  <td width=39></td>
  <td width=52></td>
  <td width=18></td>
  <td width=35></td>
  <td width=56></td>
  <td width=18></td>
  <td width=38></td>
  <td width=52></td>
  <td width=18></td>
  <td width=42></td>
  <td width=49></td>
  <td width=7></td>
 </tr>
</table>

<p><font size=2>See
accompanying notes to consolidated financial statements.</font></p>

<page>


<p align=center>&nbsp;</p>

<p align=center><font size=2>CPB
INC. AND SUBSIDIARY</font></p>

<p align=center><a name=ConsolidatedStatementsOfChangesInStockho><font size=2>CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS&#146; EQUITY AND COMPREHENSIVE INCOME</font></a></p>

<p align=center><font size=2>(Unaudited)</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="37%" colspan=2 valign=bottom><font size=2>(Dollars
  in thousands, except per share data)</font></td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Common stock</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Surplus</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Retained earnings</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Accumulated other
  comprehensive income(loss)</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Total</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Six
  months ended June 30, 2001:</font></td>
  <td  align=center width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom><font size=2>Balance
  at December 31, 2000</font></td>
  <td  align=right width="3%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>6,172</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="3%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>45,848</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>88,232</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="3%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>3,060</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>143,312</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="35%" valign=bottom bgcolor="#cceeff"><font size=2>Net
  income</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>11,102</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>11,102</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="35%" valign=bottom><font size=2>Net
  change in unrealized gain(loss) on investment securities, net of taxes of
  $1,068</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>1,605</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>1,605</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Comprehensive
  income</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>12,707</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom><font size=2>Cash
  dividends declared ($0.32 per share)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(2,632</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(2,632</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>18,100
  shares of common stock issued</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>286</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>286</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom><font size=2>255,000
  shares of common stock repurchased</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(189</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(6,751</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(6,940</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Balance
  at June 30, 2001</font></td>
  <td  align=right width="3%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>6,269</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="3%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>45,848</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>89,951</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="3%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>4,665</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>146,733</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom><font size=2>Disclosure
  of reclassification amount:</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Unrealized
  holding gain(loss) on investment securities during period, net of taxes of
  $1,037</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,558</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,558</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom><font size=2>Less:
  reclassification adjustment for gains (losses) included in net income, net of
  taxes of ($31)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(47</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(47</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="35%" valign=bottom bgcolor="#cceeff"><font size=2>Net
  change in unrealized gain(loss) on investment securities</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>1,605</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>1,605</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom><font size=2>Six
  months ended June 30, 2000:</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Balance
  at December 31, 1999</font></td>
  <td  align=right width="3%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>6,540</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="3%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>45,848</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>94,436</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="3%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>(2,745</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>144,079</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="35%" valign=bottom><font size=2>Net
  income</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>9,376</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>9,376</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="35%" valign=bottom bgcolor="#cceeff"><font size=2>Net
  change in unrealized gain(loss) on investment securities, net of taxes of
  $(5)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(8</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(8</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom><font size=2>Comprehensive
  income</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>9,368</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Cash
  dividends declared ($0.30 per share)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(2,701</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(2,701</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom><font size=2>4,540
  shares of common stock issued</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>73</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>73</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>507,799
  shares of common stock repurchased</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(361</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(11,922</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(12,283</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom><font size=2>Balance
  at June 30, 2000</font></td>
  <td  align=right width="3%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>6,252</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="3%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>45,848</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>89,189</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="3%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>(2,753</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>138,536</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Disclosure
  of reclassification amount: </font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom><font size=2>Unrealized
  holding gain(loss) on investment securities during period, net of taxes of
  $205</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>310</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>310</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Less:
  reclassification adjustment for gains included in net income, net of taxes of
  $211</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>318</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>318</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="37%" colspan=2 valign=bottom><font size=2>Net
  change in unrealized gain(loss) on investment securities</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="3%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>(8</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>(8</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
</table>

<p><font size=2>See
accompanying notes to consolidated financial statements.</font></p>

<page>


<p align=center>&nbsp;</p>

<p align=center><font size=2>CPB
INC. AND SUBSIDIARY</font></p>

<p align=center><a name=ConsolidatedStatementsOfCashFlows><font size=2>CONSOLIDATED STATEMENTS
OF CASH FLOWS</font></a></p>

<p align=center><font size=2>(Unaudited)</font></p>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="63%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="34%" colspan=6 valign=bottom><font size=2>Six Months Ended</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="63%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="34%" colspan=6 valign=bottom><font size=2>June 30,</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="63%" colspan=5 valign=bottom><font size=2>(Dollars in thousands)</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>2001</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>2000</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="63%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>Cash
  flows from operating activities:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Net
  income</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>11,102</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>9,376</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="63%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>Adjustments
  to reconcile net income to net cash provided by operating activities:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Provision
  for loan losses</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>1,650</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>2,000</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Provision
  for depreciation and amortization</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,378</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>1,370</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Net
  amortization and accretion of investment securities</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>(305</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>28</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Net
  loss (gain) on investment securities</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(506</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>667</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Federal
  Home Loan Bank stock dividends received</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>(674</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>(610</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Origination
  of loans held for sale</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(68,989</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>(642</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Net
  (gain) loss on sale of loans</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>(718</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>28</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Proceeds
  from sales of loans held for sale</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>69,499</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>3,413</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Deferred
  income tax expense</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>(925</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>(365</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Equity
  in earnings of unconsolidated subsidiaries</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(217</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>(302</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Net
  decrease in other assets</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>560</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>(9,160</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Net
  increase in other liabilities</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>7,969</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>1,633</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="2%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="60%" colspan=3 valign=bottom><font size=2>Net
  cash provided by operating activities</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>19,824</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>7,436</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="2%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="60%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="63%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>Cash
  flows from investing activities:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Proceeds
  from maturities of and calls on investment securities held to maturity</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>7,302</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>7,216</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Proceeds
  from sales of investment securities available for sale</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>34,294</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>29,340</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Proceeds
  from maturities of and calls on investment securities available for sale</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>18,875</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>15,422</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Purchases
  of investment securities available for sale</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(27,057</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>(56,585</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Net
  (increase) decrease in interest-bearing deposits in other banks</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>(15,245</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>4,831</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Net
  increase in Federal funds sold</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(10,000</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Net
  loan repayments (originations)</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>34,232</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>(51,688</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Purchases
  of premises and equipment</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(420</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>(868</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Distributions
  from unconsolidated subsidiaries</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>125</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>250</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Investments
  in unconsolidated subsidiaries</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(81</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>(27</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Acquisition
  of remaining interest in CKSS Associates</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>(31,043</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="59%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Net
  cash provided by (used in) investing activities</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>10,982</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>(52,109</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="59%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="63%" colspan=5 valign=bottom><font size=2>Cash
  flows from financing activities:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Net
  increase in deposits</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>42,933</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>16,470</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Proceeds
  from long-term debt</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>50,000</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Repayments
  of long-term debt</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(21,243</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>(11,318</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Net
  decrease in short-term borrowings</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>(52,720</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>(33,340</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Cash
  dividends paid</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(2,670</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>(2,670</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Proceeds
  from sale of common stock</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>286</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>73</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Repurchases
  of common stock</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(6,940</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>(12,283</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="59%" valign=bottom><font size=2>Net
  cash provided by (used in) financing activities</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>(40,354</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font size=2>6,932</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="59%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="59%" valign=bottom bgcolor="#cceeff"><font size=2>Net
  decrease in cash and cash equivalents</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(9,548</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>(37,741</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="59%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="63%" colspan=5 valign=bottom><font size=2>Cash
  and cash equivalents:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>At
  beginning of period</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>52,207</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>83,425</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>At
  end of period</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>42,659</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font size=2>45,684</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="6%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="63%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>Supplemental
  disclosure of cash flow information:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom><font size=2>Cash
  paid during the period for interest</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>29,521</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font size=2>22,510</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Cash
  paid during the period for income taxes</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>5,100</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="63%" colspan=5 valign=bottom><font size=2>Supplemental
  disclosure of noncash investing and financing activities:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Transfer
  of loans to other real estate</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>1,592</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,897</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=13></td>
  <td width=6></td>
  <td width=4></td>
  <td width=2></td>
  <td width=430></td>
  <td width=49></td>
  <td width=65></td>
  <td width=19></td>
  <td width=52></td>
  <td width=8></td>
  <td width=54></td>
  <td width=18></td>
 </tr>
</table>

<p><font size=2>See
accompanying notes to consolidated financial statements.</font></p>

<page>


<p align=center>&nbsp;</p>

<p><font size=2>CPB
INC. AND SUBSIDIARY<br>
<a name=NotesToConsolidatedFinancialStatements>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</a><br>
(Unaudited)<br>
June 30, 2001 and 2000</font></p>

<p><font size=2>1.&nbsp; Basis of Presentation</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The financial information included
herein is unaudited, except for the consolidated balance sheet at December 31,
2000.&nbsp; However, such information
reflects all adjustments (consisting solely of normal recurring adjustments)
which are, in the opinion of management, necessary for a fair statement of
results for the interim periods.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The results of operations for the three
and six months ended June 30, 2001 are not necessarily indicative of the
results to be expected for the full year.</font></p>

<p><font size=2>2.&nbsp; Comprehensive Income</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Components of other comprehensive income
(loss) for the three and six months ended June 30, 2001 and 2000 were comprised
solely of unrealized holding gains (losses) on available-for-sale investment
securities.&nbsp; Accumulated other
comprehensive income (loss), net of taxes, is presented below as of the dates
indicated:</font></p>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="93%">
 <tr>
  <td  align=center width="18%" valign=bottom>&nbsp;</td>
  <td  align=center width="37%" colspan=5 valign=bottom><font size=2>Three months ended
  June 30,</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="37%" colspan=5 valign=bottom><font size=2>Six months ended June
  30,</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="18%" valign=bottom><font size=2>(Dollars in thousands)</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom><font size=2>2001</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>2000</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom><font size=2>2001</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>2000</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="18%" valign=bottom bgcolor="#cceeff"><font size=2>Balance
  at beginning of period</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font size=2>4,739</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>(2,817</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>3,060</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>(2,745</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="18%" valign=bottom><font size=2>Current-period
  change</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom><font size=2>(74</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>64</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom><font size=2>1,605</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>(8</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="18%" valign=bottom bgcolor="#cceeff"><font size=2>Balance
  at end of period</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font size=2>4,665</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>(2,753</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>4,665</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>(2,753</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
</table>

<p><font size=2>3.&nbsp; Segment Information</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company has three reportable
segments: retail branches, commercial finance and treasury. &nbsp;The segments reported are consistent with
internal functional reporting lines.&nbsp;
They are managed separately because each unit has different target
markets, technological requirements, marketing strategies and specialized
skills.&nbsp; The retail branch segment
includes all retail branch offices.&nbsp;
Products and services offered include a full range of deposit and loan
products, safe deposit boxes and various other bank services.&nbsp; The commercial finance segment focuses on
lending to corporate customers, residential mortgage lending, construction and
real estate development lending and international banking services.&nbsp; The treasury segment is responsible for
managing the Company's investment securities portfolio and wholesale funding
activities.&nbsp; Other activities include
trust, mortgage servicing, and indirect lending activities.</font></p>

<page>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2>The accounting policies
of the segments are consistent with the Company's accounting policies that are
described in note 1 to the consolidated financial statements in the 2000 Annual
Report to Shareholders.&nbsp; The majority of
the Company's net income is derived from net interest income.&nbsp; Accordingly, Management focuses primarily on
net interest income (expense), rather than gross interest income and expense
amounts, in evaluating segment profitability.&nbsp;
Intersegment net interest income (expense) is allocated to each segment
based on the amount of net investable funds provided (used) by that segment at
a rate equal to the Bank's average rate on interest-sensitive assets and
liabilities. All administrative and overhead expenses are allocated to the
segments at cost.&nbsp; Cash, investment
securities, loans and their related balances are allocated to the segment
responsible for acquisition and maintenance of those assets.&nbsp; Segment assets also include all premises and
equipment used directly in segment operations.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment profits and assets are provided
in the following table for the periods indicated.</font></p>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="40%" colspan=7 valign=bottom><font size=2>(Dollars
  in thousands)</font></td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Retail Branch</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Commercial Finance</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Treasury</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>All Others</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Total</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="40%" colspan=7 valign=bottom bgcolor="#cceeff"><font size=2>Three
  months ended June 30, 2001:</font></td>
  <td  align=center width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Net
  interest income (expense)</font></td>
  <td  align=right width="3%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>(4,677</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>17,876</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>2,344</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>3,361</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="1%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>18,904</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Intersegment
  net interest income (expense)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>9,912</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(8,439</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>44</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(1,517</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Provision
  for loan losses</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>280</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>159</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>461</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>900</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Other
  operating income (expense)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,766</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>211</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>513</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>980</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>3,470</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Other
  operating expense</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>3,528</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>651</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>104</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>8,191</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>12,474</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Administrative
  and overhead expense allocation</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>3,865</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,512</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>113</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(5,490</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Income
  tax expense (credit)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(237</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>2,635</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>965</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(137</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>3,226</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>Net
  income</font></td>
  <td  align=right width="3%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>(435</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>4,691</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>1,719</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>(201</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>5,774</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="40%" colspan=7 valign=bottom><font size=2>Three
  months ended June 30, 2000:</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Net
  interest income (expense)</font></td>
  <td  align=right width="3%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>(1,501</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>13,951</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>1,432</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>3,940</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>17,822</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Intersegment
  net interest income (expense)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>8,107</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(6,103</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>526</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(2,530</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Provision
  for loan losses</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>284</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>374</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>342</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,000</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Other
  operating income</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>751</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>296</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(296</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>1,944</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>2,695</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Other
  operating expense</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>3,834</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>526</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>79</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>7,682</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>12,121</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Administrative
  and overhead expense allocation</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>3,934</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>939</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>79</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(4,952</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Income
  tax expense (benefit)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(236</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>2,192</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>528</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>122</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>2,606</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Net
  income (loss)</font></td>
  <td  align=right width="3%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>(459</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>4,113</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>976</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>160</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="1%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>4,790</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="6%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="40%" colspan=7 valign=bottom bgcolor="#cceeff"><font size=2>Six
  months ended June 30, 2001:</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Net
  interest income (expense)</font></td>
  <td  align=right width="3%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>(8,614</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>35,763</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>3,481</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>7,186</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="1%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>37,816</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Intersegment
  net interest income (expense)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>19,769</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(16,831</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>873</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(3,811</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Provision
  for loan losses</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>391</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>225</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>1,034</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>1,650</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Other
  operating income</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>3,096</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>532</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>714</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>2,809</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>7,151</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Other
  operating expense</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>7,061</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>1,624</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>835</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>16,516</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>26,036</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Administrative
  and overhead expense allocation</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>8,167</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>3,376</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>252</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(11,795</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Income
  tax expense (benefit)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(484</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>5,088</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>1,430</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>145</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>6,179</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="2%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="37%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Net
  income (loss)</font></td>
  <td  align=right width="3%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>(884</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>9,151</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>2,551</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>284</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>11,102</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="2%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="37%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="40%" colspan=7 valign=bottom><font size=2>Six
  months ended June 30, 2000:</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Net
  interest income (expense)</font></td>
  <td  align=right width="3%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>(2,767</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>26,704</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>3,046</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>7,793</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>34,776</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Intersegment
  net interest</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>income
  (expense)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>16,390</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(12,269</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>855</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(4,976</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Provision
  for loan losses</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>665</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>458</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>877</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>2,000</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Other
  operating income</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,597</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>612</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(637</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>5,630</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>7,202</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Other
  operating expense</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>7,498</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>1,599</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>198</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>16,200</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>25,495</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Administrative
  and overhead</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>expense
  allocation</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>8,163</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>1,741</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>172</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(10,076</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Income
  tax expense (benefit)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(420</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>3,917</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,015</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>595</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>5,107</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="37%" colspan=3 valign=bottom><font size=2>Net
  income (loss)</font></td>
  <td  align=right width="3%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>(686</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>7,332</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>1,879</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>851</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="1%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>9,376</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="37%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="6%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="40%" colspan=7 valign=bottom bgcolor="#cceeff"><font size=2>At June 30, 2001:</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Investment securities</font></td>
  <td  align=right width="3%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>355,364</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="1%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>355,364</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Loans</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>156,694</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>982,630</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>116,078</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,255,402</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Other</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>17,459</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>21,148</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>89,380</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>58,353</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>186,340</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="37%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Total assets</font></td>
  <td  align=right width="3%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>174,153</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>1,003,778</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>444,744</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>174,431</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>1,797,106</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="37%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="40%" colspan=7 valign=bottom><font size=2>At December 31, 2000:</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Investment securities</font></td>
  <td  align=right width="3%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>384,619</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>384,619</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom><font size=2>Loans</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>169,839</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>944,436</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>&#151;</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>176,915</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>1,291,190</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="38%" colspan=6 valign=bottom bgcolor="#cceeff"><font size=2>Other</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>19,906</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>21,841</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>73,432</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>25,930</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>141,109</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=6 valign=bottom>&nbsp;</td>
  <td width="36%" valign=bottom><font size=2>Total assets</font></td>
  <td  align=right width="3%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom><font size=2>189,745</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>966,277</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>458,051</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font size=2>202,845</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="1%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font size=2>1,816,918</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>

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  <td width=2></td>
  <td width=2></td>
  <td width=265></td>
  <td width=22></td>
  <td width=50></td>
  <td width=14></td>
  <td width=16></td>
  <td width=56></td>
  <td width=14></td>
  <td width=18></td>
  <td width=55></td>
  <td width=14></td>
  <td width=20></td>
  <td width=53></td>
  <td width=14></td>
  <td width=13></td>
  <td width=59></td>
  <td width=14></td>
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</table>

<p align=center><font size=2>&nbsp;</font></p>

<p><font size=2>4.&nbsp; Accounting Pronouncements</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In June 1998, the Financial Accounting
Standards Board (&quot;FASB&quot;) issued Statement of Financial Accounting
Standards (&quot;SFAS&quot;) No. 133, &quot;Accounting for Derivative
Instruments and Hedging Activities,&quot; which establishes accounting and
reporting standards for derivative instruments, including certain derivative
instruments embedded in other contracts, and for hedging activities.&nbsp; In June 1999, the FASB issued SFAS No. 137,
&quot;Accounting for Derivative Instruments and Hedging Activities - Deferral
of the Effective Date of FASB Statement No. 133, an Amendment of SFAS Statement
No. 133,&quot; which deferred the effective date of SFAS No. 133.&nbsp; SFAS No. 133, as amended, is now effective
for all fiscal quarters of fiscal years beginning after June 15, 2000.&nbsp; Earlier application is permitted only as of
the beginning of a fiscal quarter.&nbsp; The application
of SFAS No. 133, as amended, effective from January 1, 2001, did not have a
material impact on the Company's consolidated financial statements.</font></p>

<page>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2>In September 2000, the
FASB issued SFAS No. 140, Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities.&nbsp;
SFAS No. 140 supersedes and replaces SFAS No. 125 of the same name and
provides accounting and reporting guidance for transfers and servicing of
financial assets and extinguishments of liabilities.&nbsp; The provisions of SFAS No. 140 are to be applied prospectively to
transactions occurring after March 31, 2001.&nbsp;
The application of SFAS No. 140 is not expected to have a material
impact on the Company&#146;s consolidated financial statements.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In June 2001, the FASB issued SFAS No.
141, Business Combinations.&nbsp; SFAS No.
141 supersedes Accounting Principles Board (APB) Opinion No. 16, Business
Combinations, and SFAS No. 38, Accounting for Preacquisition Contingencies of
Purchased Enterprises, and provides accounting and reporting guidance on
business combinations initiated after June 30, 2001.&nbsp; The application of SFAS No. 141 is not expected to have a
material impact on the Company&#146;s consolidated financial statements.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In June 2001, the FASB issued SFAS No.
142, Goodwill and Other Intangible Assets.&nbsp;
SFAS No. 142 supersedes APB Opinion No. 17, Intangible Assets, and
provides accounting and reporting guidance on intangible assets acquired
individually or with a group of other assets (but not those acquired in a
business combination). The provisions of SFAS No. 142 are to be applied
starting with fiscal years beginning after December 15, 2001.&nbsp; The application of SFAS No. 142 is not
expected to have a material impact on the Company&#146;s consolidated financial
statements.</font></p>

<p align=center><font size=2>&nbsp;</font></p>

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